Saudi Arabia,Russia to call for oil market cooperation

Daily Dhaka Times /Reuters : Top oil producers Saudi Arabia and Russia on Monday plan to make a joint statement during the G20 summit in China calling for cooperation to support oil markets, several sources with knowledge of the matter said.

The announcement comes as oil prices have more than halved since 2014 to under $50 a barrel amid ballooning oversupply that has curtailed the economies of exporters.

The statement “will call for cooperation, promotion of exchange of dialogue,” one of the sources said.

Independently, a press release was issued on Monday stating that Saudi Energy Minister Khalid al-Falih will hold a press conference at 0930 GMT during the G20 summit in Hangzhou, China.

The Organization of the Petroleum Exporting Countries (OPEC) will hold informal talks in Algeria later this month, and is scheduled to officially meet in Vienna in November, with several producers calling for an output freeze to rein in the production glut.

One of the sources with knowledge of the matter said non-OPEC oil producer Russia would likely send a delegation to November’s OPEC meeting.

As a result of the anticipated announcement, international benchmark Brent crude oil jumped over 4.7 per cent from their last settlement to $49.04 per barrel at 0918 GMT.

“In the event of an OPEC freeze at current levels, we could see a sharp rebound in oil prices to $56 a barrel in 2016 Q4 rising to $68 in 2017 Q4,” French bank Natixis said in a note.